6-K
QUHUO Ltd (QHUOY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2023
Commission File Number 001- 39354
Quhuo Limited
(Exact name of registrant as specified in itscharter)
3rd Floor, Block A, Tonghui Building
No. 1132 Huihe South Street, Chaoyang District
Beijing, People’s Republic of China
(+86-10) 5923 6208
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Quhuo Limited | |||
|---|---|---|---|
| Date: | April 14, 2023 | By: | /s/ Leslie Yu |
| Name: Leslie Yu | |||
| Title: Chairman and Chief Executive Officer |
EXHIBIT INDEX
| ExhibitNumber | Description |
|---|---|
| 99.1 | Earning Release |
| 99.2 | Press Release |
Exhibit 99.1
Quhuo Reports Unaudited Financial Results forthe Second Half and Full Year 2022
BEIJING, China, April 14, 2023 (PRNewswire) -- Quhuo Limited (NASDAQ: QH) (“Quhuo,” the “Company,” “we” or “our”), a leading gig economy platform focusing on local life services in China, today reported its unaudited financial results for the six months and full year ended December 31, 2022.
Financial Highlights for the Second Halfof 2022
| • | Operating income was RMB43.7 million (US$6.3 million), compared with an operating loss of RMB54.2<br> million in the same period in 2021. |
|---|---|
| • | Net income was RMB10.2 million (US$1.5 million), compared with net loss of RMB71.7 million in the same period in 2021. |
| --- | --- |
| • | Adjusted net income was RMB17.4 million (US$2.5 million), compared with adjusted net loss of RMB53.0 million in the same period in<br>2021. |
| --- | --- |
| • | Adjusted EBITDA was RMB47.8 million (US$6.9 million), compared with adjusted EBITDA loss of RMB23.3 in the same period in 2021. |
| --- | --- |
Financial****Highlights for Full Year 2022
| • | Operating income was RMB35.6 million (US$5.2 million), compared with an operating loss of RMB139.8<br> million in 2021. |
|---|---|
| • | Adjusted net income was RMB3.3 million (US$0.5 million), compared with adjusted net loss of RMB122.3 million in 2021. |
| --- | --- |
| • | Adjusted EBITDA was RMB58.6 million (US$8.5 million), compared with adjusted EBITDA loss of RMB72.7 million in 2021. |
| --- | --- |
Mr. Leslie Yu, Chairman and CEO of Quhuo, stated, “We are pleased to conclude the 2022 fiscal year with strong financial and operational performance. As a result of the successful execution of our strategy to improve profitability after increasing revenues since 2021, we achieved a 56.0% year-on-year increase in revenue in 2021, followed by an adjusted net income of RMB3.3 million (US$0.5 million) in 2022, which turned from an adjusted net loss of RMB122.3 million in 2021.”
“Since 2021, we have made several initiatives to enlarge our customer base and service scope, including commencing the freight service solutions in July 2021, which helped us generate a great profit in 2022. We believe that the above results have proven that our strategy has been effective, our team has reliable strategic execution capability, and our business model is sustainable.”
“In 2023, Quhuo will embark on an overseas expansion strategy, exploring more growth opportunities with Quhuo International, its overseas business unit. Following the trend of industrial internet, we plan to empower overseas partners with operational capabilities and technological expertise in mobility services and on-demand delivery while facilitating the export of new energy vehicles and electric mopeds from China. We are confident that our expansion into overseas markets will bring new growth opportunities to the Company.”
“In addition, leveraging our 10-year experience and management capabilities in the field of local life services, we are developing SaaS services that can empower third-party service providers in this industry. We aim to empower small and medium-sized local life service providers with Quhuo’s brand and business resources through SaaS platform, helping them increase income and improve operational efficiency, while also assisting them to conduct business in compliance with applicable regulations and reducing operational risk.”
Unaudited****Financial Results of the Second Half of 2022
Total revenues were RMB1,956.6 million (US$283.7 million), compared with total revenues of RMB2,187.0 million in the second half of 2021.
| • | Revenues from on-demand food delivery solutions were RMB1,874.9 million (US$271.8 million), representing a decrease of 9.5% from RMB2,071.3<br>million in the second half of 2021, primarily due to the decrease in the number of delivery orders as a result of the regional resurgence<br>of COVID-19 in multiple localities in the second half of 2022. |
|---|---|
| • | Revenues from mobility service solutions, consisting of shared-bike maintenance, ride-hailing and freight service solutions, were<br>RMB51.6 million (US$7.5 million), representing a decrease of 23.5% from RMB67.4 million in the second half of 2021, primarily due to the<br>reduced customer demand resulting from the regional resurgence of COVID-19 in multiple localities in the second half of 2022. |
| --- | --- |
| • | Revenues from housekeeping and accommodation solutions and other services were RMB30.0 million (US$4.4 million), representing a decrease<br>of 37.6% from RMB48.2 million in the second half of 2021, primarily due to the reduced customer demand resulting from the regional resurgence<br>of COVID-19 in multiple localities in the second half of 2022. |
| --- | --- |
The cost of revenues was RMB1,797.8 million (US$260.7 million), representing a 12.8% year-over-year decrease, primarily in line with the reduced customer demand resulting from COVID-19.
General and administrative expenses were RMB114.1 million (US$16.5 million), representing a slight increase of 2.0% from RMB111.8 million in the second half of 2021.
Research and development expenses were RMB5.4 million (US$0.8 million), representing a decrease of 50.8% from RMB10.9 million in the second half of 2021, primarily due to the decreases in the headcount and average compensation level for our research and development personnel as we restructured our R&D team.
As a result of the foregoing, we recorded operating income of RMB43.7 million (US$6.3 million), compared to operating loss of RMB54.2 million in the second half of 2021.
We recorded other loss, net, of RMB17.8 million (US$2.6 million), compared to other loss, net, of RMB6.6 million in the second half of 2021, primarily due to the fluctuation in the fair value of our investment in a mutual fund.
Income tax expenses was RMB14.3 million (US$2.1 million), representing an increase of 75.2% from RMB8.2 million in the second half of 2021, primarily due to the increase in the taxable income generated from on-demand food delivery solutions.
Net income attributable to Quhuo Limited was RMB11.8 million (US$1.7 million), compared with net loss attributable to Quhuo Limited of RMB46.4 million in the second half of 2021.
Adjusted EBITDA was RMB47.8 million (US$6.9 million), compared with adjusted EBITDA loss of RMB23.3 million in the second half of 2021.^(1)^
Adjusted net income was RMB17.4 million (US$2.5 million), compared to the adjusted net loss of RMB53.0 million in the second half of 2021.^(1)^
Unaudited Financial Results of Full Year 2022
Total revenues were RMB3,820.4 million (US$553.9 million), compared with total revenues of RMB4,025.3 million in 2021.
| • | Revenues from on-demand food delivery solutions were RMB3,638.7 million (US$527.6 million), representing a decrease of 5.0% from RMB3,829.0<br>million in 2021, primarily due to the decrease in the number of delivery orders resulting from the regional resurgence of COVID-19 in<br>multiple localities in 2022. |
|---|---|
| • | Revenues from mobility service solutions were RMB108.1 million (US$15.7 million), representing a decrease of 1.9% from RMB110.2 million<br>in 2021, primarily due to the reduced customer demand resulting from the regional resurgence of COVID-19 in multiple localities in 2022. |
| --- | --- |
| • | Revenues from housekeeping and accommodation solutions and other services were RMB73.6 million (US$10.7<br>million), representing a decrease of 14.6% from RMB86.2 million in 2021, primarily due to the reduced customer demand resulting from the<br>regional resurgence of COVID-19 in multiple localities in 2022. |
| --- | --- |
Cost of revenues was RMB3,567.7 million (US$517.3 million), representing a 7.3% year-over-year decrease, primarily due to the decrease in service fees paid to workers, which was in line with the decreased number of delivery orders resulting from the regional resurgence of COVID-19 in multiple localities in 2022.
General and administrative expenses were RMB213.6 million (US$31.0 million), representing a decrease of 11.3% from RMB240.7 million, primarily due to the decrease in share-based compensation expenses from RMB68.9 million in 2021 to RMB19.8 million (US$2.9 million) in 2022.
Research and development expenses were RMB12.5 million (US$1.8 million), representing a decrease of 37.7% from RMB20.1 million in 2021, primarily due to the decreases in the headcount and average compensation level for our research and development personnel as we restructured our R&D team.
Operating income was RMB35.6 million (US$5.2 million), compared to operating loss of RMB139.8 million in 2021.
Other loss, net was RMB26.1 million (US$3.8 million), compared to other loss, net of RMB34.0 million in 2021, primarily due to the fluctuation in the fair value of our investment in a mutual fund.
Income tax expense was RMB21.0 million (US$3.0 million), representing an increase of 74.6% from RMB12.0 million in 2021, primarily due to the increase in our taxable income.
Net loss attributable to Quhuo Limited was RMB13.1 million (US$1.9 million), compared with net loss attributable to Quhuo Limited of RMB157.9 million in 2021.
Adjusted EBITDA was RMB58.6 million (US$8.5 million), compared with adjusted EBITDA loss of RMB72.7 million in 2021.^(1)^
Adjusted net income was RMB3.3 million (US$0.5 million), compared with adjusted net loss of RMB122.3 million in 2021.^(1)^
| (1) | See “Use of Non-GAAP Financial Measures.” |
|---|
Balance Sheet
As of December 31, 2022, the Company had cash, short-term investments and restricted cash of RMB165.4 million (US$24.0 million) and short-term debt of RMB65.4 million (US$9.5 million).
CONFERENCE CALL
Quhuo will hold a conference call on on Friday, April 14, 2023 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong time on the same day) to discuss the financial results.
Participants can register for the conference call by navigating to https://s1.c-conf.com/diamondpass/10030146-td56sh.html. Once preregistration has been completed, participants will receive dial-in numbers, a direct event passcode, and a unique registrant ID.
To join the conference, please dial the number you receive, enter the direct event passcode followed by your unique registrant ID, and you will be joined to the conference instantly.
A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.quhuo.cn/.
A replay will be accessible through April 21, 2023 by dialing the following numbers:
| United States: | 1855 883 1031 |
|---|---|
| China Domestic: | 400 1209 216 |
| Hong Kong: | 800 930 639 |
| Reply PIN: | 10030146 |
USE OF NON-GAAP FINANCIALMEASURES
Quhuo has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP).
Quhuo uses adjusted net income/loss and adjusted EBITDA, which are non-GAAP financial measures, in evaluating its operating results and for financial and operational decision-making purposes. Adjusted net income/loss represents net income/loss before share-based compensation expenses. Adjusted EBITDA represents adjusted net income/loss before income tax benefit/expense, amortization, depreciation and interest. Quhuo believes that these non-GAAP financial measures help identify underlying trends in its business that could otherwise be distorted by the effect of share-based compensation expenses, income tax benefits or expenses, amortization, depreciation and interest. Quhuo believes that such non-GAAP financial measures also provide useful information about its operating results, enhance the overall understanding of its past performance and prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
The non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. They should not be considered in isolation or construed as alternatives to net loss or any other performance measures or as an indicator of Quhuo’s operating performance. Further, these non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Quhuo encourages investors and others to review the Company’s financial information in its entirety and not rely on a single financial measure. Investors are encouraged to compare the historical non-GAAP financial measures with the most directly comparable GAAP measures. Quhuo mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating its performance. The following table sets forth a reconciliation of our net income/loss to adjusted net income and adjusted EBITDA, respectively.
| Reconciliation of GAAP and Non-GAAP Results | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Six Months Ended December 31, | For the Year Ended December 31, | |||||||||||||
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | |||||||||
| (RMB) | (RMB) | (US) | (RMB) | (RMB) | (US) | |||||||||
| Net (loss)/income | (71,673 | ) | 10,172 | (191,230 | ) | (16,414 | ) | ) | ||||||
| Add: Share-based Compensation | 18,680 | 7,259 | 68,932 | 19,762 | ||||||||||
| Adjusted net (loss)/income | (52,993 | ) | 17,431 | (122,298 | ) | 3,348 | ||||||||
| Add: Income tax expense | 8,173 | 14,319 | 12,027 | 21,002 | ||||||||||
| Depreciation | 1,415 | 3,715 | 5,233 | 7,513 | ||||||||||
| Amortization | 16,151 | 10,431 | 25,278 | 21,094 | ||||||||||
| Interest | 3,929 | 1,897 | 7,026 | 5,683 | ||||||||||
| Adjusted EBITDA | (23,325 | ) | 47,793 | (72,734 | ) | 58,640 |
All values are in US Dollars.
EXCHANGE RATE INFORMATION
This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for readers’ convenience. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB 6.8972 to US$1.00, the rate in effect as of December 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.
ABOUT QUHUO LIMITED
Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.
With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.
SAFEHARBOR STATEMENT
This press release contains ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo’s business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as “expect,” “anticipate,” “believe,” “project,” “will” and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo’s current expectations and involve risks and uncertainties. Quhuo’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo’s abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationship with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares to competitors in existing markets and its success in expansion into new markets. Other risks and uncertainties are included under the caption “Risk Factors” and elsewhere in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information about Quhuo, please visit https://ir.quhuo.cn/.
CONTACTS:
Investor Relations
Quhuo Limited
E-mail: ir@meishisong.cn
QUHUO LIMITED
UNAUDITEDCONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)
| As of December 31, | |||||
|---|---|---|---|---|---|
| 2021 | 2022 | 2022 | |||
| (RMB) | (RMB) | (US) | |||
| Assets | |||||
| Current assets | |||||
| Cash | 28,593 | 95,444 | |||
| Restricted cash | 2,315 | 5,579 | |||
| Short-term investments | 178,830 | 64,355 | |||
| Accounts receivable, net | 510,683 | 495,046 | |||
| Prepayments and other current assets | 42,228 | 54,921 | |||
| Amounts due from related parties | 4,787 | 3,876 | |||
| Total current assets | 767,436 | 719,221 | |||
| Property and equipment, net | 14,914 | 11,450 | |||
| Intangible assets, net | 124,259 | 101,603 | |||
| Right-of-use assets, net | 7,964 | 5,562 | |||
| Goodwill | 66,753 | 65,481 | |||
| Deferred tax assets | 6,729 | 12,000 | |||
| Other non-current assets | 157,320 | 140,300 | |||
| Total non-current assets | 377,939 | 336,396 | |||
| Total assets | 1,145,375 | 1,055,617 | |||
| liabilities, non-controlling interests and shareholders’ equity | |||||
| Current liabilities | |||||
| Accounts payables | 334,083 | 293,281 | |||
| Short-term lease liabilities | 5,317 | 3,276 | |||
| Accrued expenses and other current liabilities | 120,971 | 125,949 | |||
| Short-term debt | 148,441 | 65,434 | |||
| Amounts due to related parties | 245 | - | |||
| Total current liabilities | 609,057 | 487,940 | |||
| Long-term debt | 3 | 1,303 | |||
| Long-term lease liabilities | 1,424 | 1,103 | |||
| Deferred tax liabilities | 753 | 814 | |||
| Other non-current liabilities | 50,703 | 66,880 | |||
| Total non-current liabilities | 52,883 | 70,100 | |||
| Total liabilities | 661,940 | 558,040 |
All values are in US Dollars.
QUHUO LIMITED
UNAUDITEDCONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)
| As of December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2022 | ||||||
| (RMB) | (RMB) | (US) | ||||||
| Shareholders’ equity | ||||||||
| Ordinary shares | 37 | 43 | ||||||
| Additional paid-in capital | 1,855,897 | 1,885,637 | ||||||
| Accumulated deficit | (1,366,734 | ) | (1,379,864 | ) | ) | |||
| Accumulated other comprehensive income | (18,259 | ) | (4,654 | ) | ) | |||
| Total Quhuo Limited shareholders’ equity | 470,941 | 501,162 | ||||||
| Non-controlling interests | 12,494 | (3,585 | ) | ) | ||||
| Total shareholders’ equity | 483,435 | 497,577 | ||||||
| Total liabilities and shareholders’ equity | 1,145,375 | 1,055,617 |
All values are in US Dollars.
QUHUO LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi (“RMB”) and U.S. dollars (“US$”), except for number of shares and per share data)
| For the Six Months Ended December 31, | For the Year Ended December 31, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2022 | 2021 | 2022 | 2022 | |||||||||||
| (RMB) | (RMB) | (US) | (RMB) | (RMB) | (US) | |||||||||||
| Revenues | 2,186,953 | 1,956,583 | 4,025,279 | 3,820,378 | ||||||||||||
| Cost of revenues | (2,060,908 | ) | (1,797,823 | ) | ) | (3,849,682 | ) | (3,567,690 | ) | ) | ||||||
| General and administrative | (111,846 | ) | (114,067 | ) | ) | (240,749 | ) | (213,592 | ) | ) | ||||||
| Research and development | (10,941 | ) | (5,379 | ) | ) | (20,122 | ) | (12,540 | ) | ) | ||||||
| (Loss)/Gain on disposal of assets, net | (5,536 | ) | 9,243 | (2,564 | ) | 13,975 | ||||||||||
| Goodwill impairment | (51,971 | ) | (4,882 | ) | ) | (51,971 | ) | (4,882 | ) | ) | ||||||
| Operating loss | (54,249 | ) | 43,675 | (139,809 | ) | 35,649 | ||||||||||
| Interest income | 267 | 499 | 644 | 690 | ||||||||||||
| Interest expense | (3,929 | ) | (1,897 | ) | ) | (7,026 | ) | (5,683 | ) | ) | ||||||
| Other loss, net | (6,589 | ) | (17,786 | ) | ) | (33,964 | ) | (26,068 | ) | ) | ||||||
| Foreign exchange gain | 1,000 | - | 952 | - | ||||||||||||
| (Loss)/income before income tax | (63,500 | ) | 24,491 | (179,203 | ) | 4,588 | ||||||||||
| Income tax expense | (8,173 | ) | (14,319 | ) | ) | (12,027 | ) | (21,002 | ) | ) | ||||||
| Net (loss)/ income | (71,673 | ) | 10,172 | (191,230 | ) | (16,414 | ) | ) | ||||||||
| Net loss attributable to non-controlling interests | 25,243 | 1,651 | 33,323 | 3,284 | ||||||||||||
| Net (loss)/ income attributable to ordinary shareholders of the Quhuo limited | (46,430 | ) | 11,823 | (157,907 | ) | (13,130 | ) | ) | ||||||||
| Non-GAAP Financial Data | ||||||||||||||||
| Adjusted net (loss)/income | (52,993 | ) | 17,431 | (122,298 | ) | 3,348 | ||||||||||
| Adjusted EBITDA | (23,325 | ) | 47,793 | (72,734 | ) | 58,640 | ||||||||||
| (Loss) /earnings per share for class A and class B ordinary shares | ||||||||||||||||
| Basic | (1.05 | ) | 0.21 | (3.60 | ) | (0.23 | ) | ) | ||||||||
| Diluted | (1.05 | ) | 0.20 | (3.60 | ) | (0.23 | ) | ) | ||||||||
| Shares used in (loss)/earnings per share computation: | ||||||||||||||||
| Basic | 44,068,777 | 56,168,787 | 43,914,204 | 56,007,723 | ||||||||||||
| Diluted | 44,068,777 | 59,123,432 | 43,914,204 | 56,007,723 |
All values are in US Dollars.
Exhibit 99.2
Quhuorealized a historical year-over-year increase in gross profit of 43.9% and achieved adjusted net profit in the second half of 2022
| • | Gross profit for the full year ended December 31, 2022 increased<br> 43.9% year-over-year. |
|---|---|
| • | Gross margin for the full year ended December 31, 2022 was 6.6%,<br> compared to 4.4% in 2021. |
| --- | --- |
BEIJING, April 14, 2023 (PRNewswire) -- Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company"), a leading gig economy platform focusing on life services in China released its unaudited financial results for the six months and full year ended December 31, 2022, revealing a year-over-year increase of 26.0% and 43.9% in gross profit, respectively.
SuccessfulImplementation of Business Development Strategy and Improved Financials
As stated by Mr. Leslie Yu, Chairman and CEO of Quhuo, the Company successfully executed the strategy to improve profitability after increasing revenues since 2021. The company achieved a remarkable 56.0% year-on-year increase in revenue in 2021, followed by a significant 43.9% year-on-year increase in gross profit in 2022. These achievements have demonstrated the effectiveness of the development strategy, the reliable strategic execution ability of the team and the sustainability of Quhuo's business model.
In terms of financial performance, Quhuo achieved impressive results in 2022. The company's gross profit increased to RMB252.7 million (US$36.6 million), reflecting a 43.9% year-over-year increase in 2022. This growth was accompanied by a higher gross margin of 6.6%, compared to 4.4% in 2021. Furthermore, Quhuo turned its adjusted net loss of RMB122.3 million in 2021 to an adjusted net income of RMB3.3 million (US$0.5 million) in 2022.
Expandinginto Vertical Business by Leveraging Operational and Technological Strengths
Quhuo has always placed great emphasis on technology to drive business growth, improve efficiency and empower partners. Drawing on 10 years of local life service experience, the SaaS system being developed by Quhuo can help small and medium-sized localized life services providers increase profits and efficiencies. We aim to utilize this technology platform to empower housekeeping and accommodation services and many other life services verticals.
In the B&B segment, Quhuo will utilize the SaaS system to empower service providers and integrate online traffic and business resources from multiple platforms. Besides, Quhuo also plans to explore the integration of the chatbot model trained by AI, which has recently gained significant attention, into the B&B vertical business. In this service sector, AI can assist service providers with online information maintenance, smart check-in, and self-check-out processes for guests. Nowadays, Quhuo has successfully extended its operation strategy from urban to rural B&Bs, empowering over 8,000 customers through light investment and detailed operation.
Given the anticipated macro environment of post-COVID-19 recovery and restored tourism consumption, Quhuo is expected to experience robust growth in the first half of 2023, particularly in the segments that were disproportionately impacted by the COVID-19, including housekeeping and accommodation solutions. This growth will be driven by Quhuo's accumulated industry experience, including cross-platform traffic integration, resource integration of small suppliers, organizational management and operation capabilities, and brand building.
Embarka New Growth Opportunities with International Business Strategy
On February 6, 2023, Quhuo officially launched its overseas business unit, marking a new chapter in its expansion. The business initiative will leverage Quhuo’s tech-enabled operational solutions to provide services to international partners.
Quhuo International collaborates with domestic auto enterprises, leveraging China's mature expertise in Internet technology and operations and advanced manufacturing capabilities in electronic vehicles, to offer "industry + Internet" products and services to global partners. This business model enables Quhuo to empower international partners with online car-hailing and delivery service, while assisting the export of domestic new energy vehicles.
Thus far, Quhuo's overseas strategy has yielded initial results, having generated business revenue and orders.
Exploring international business is a key strategic move for Quhuo and is expected to have a significant positive impact, paving the way for a new and exciting future for the company.
EXCHANGE RATE INFORMATION
This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB6.8972 to US$1.00, the rate in effect as of December 31, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.
About Quhuo
Quhuo Limited (NASDAQ: QH) ("Quhuo" or the "Company") is a leading gig economy platform focusing on local life services in China. Leveraging Quhuo+, its proprietary technology infrastructure, Quhuo is dedicated to empowering and linking workers and local life service providers and providing end-to-end operation solutions for the life service market. The Company currently provides multiple industry-tailored operational solutions, primarily including on-demand delivery solutions, mobility service solutions, housekeeping and accommodation solutions, and other services, meeting the living needs of hundreds of millions of families in the communities.
With the vision of promoting employment, stabilizing income and empowering entrepreneurship, Quhuo explores multiple scenarios to promote employment of workers, provides, among others, safety and security and vocational training to protect workers, and helps workers plan their career development paths to realize their self-worth.
SAFE HARBOR STATEMENT
This press release contains ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical or current fact included in this press release are forward-looking statements, including but not limited to statements regarding Quhuo's business development, financial outlook, beliefs and expectations. Forward-looking statements include statements containing words such as "expect," "anticipate," "believe," "project," "will" and similar expressions intended to identify forward-looking statements. These forward-looking statements are based on Quhuo's current expectations and involve risks and uncertainties. Quhuo's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties related to Quhuo's abilities to (1) manage its growth and expand its operations, (2) address any or all of the risks and challenges in the future in light of its limited operating history and evolving business portfolios, (3) remain in its competitive position in the on-demand food delivery market or further diversify its solution offerings and customer portfolio, (4) maintain relationships with major customers and to find replacement customers on commercially desirable terms or in a timely manner or at all, (5) maintain relationships with existing industry customers or attract new customers, (6) attract, retain and manage workers on its platform, and (7) maintain its market shares in relation to competitors in existing markets and its success in expansion into new markets, as well as the length and severity of the recent COVID-19 outbreak and its impact on Quhuo's business and industry. Other risks and uncertainties are included under the caption "Risk Factors" and elsewhere in the Company's filings with the Securities and Exchange Commission, including, without limitation, the final prospectus related to the IPO filed with the SEC on July 10, 2020 and the Company's latest annual report on Form 20-F. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and Quhuo undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
For investor and media inquiries, pleasecontact:
Quhuo Limited
E-mail: pr@meishisong.cn
SOURCE Quhuo Limited